Question

overhead to individual jobs. At the beginning of the year, the company expected to incur t following: Manufacturing overhead costs Direct labour cost Machine hours $280,000 500,000 30,000 At the end of the year, the company had actually incurred the following: Direct labour cost $920,000 Depreciation on manufacturing plant and 250,000 equipment Property taxes on plant 35,000 Sales salaries 12,000 Delivery drivers' wages 8,000 Plant janitors' wages 10,000 Machine hours 25,500 hours Required: 1. Compute Sambell's indirect cost allocation rate based on labour cost. 2. Compute Sambell's indirect cost allocation rate based on machine hours. 3. How much overhead was allocated during the year if the allocation base was direct labour cost? 4. How much manufacturing overhead was incurred during the year?

          overhead to individual jobs. At the beginning of the year, the company expected to incur t
following:
Manufacturing overhead costs
Direct labour cost
Machine hours
$280,000
500,000
30,000
At the end of the year, the company had actually incurred the following:
Direct labour cost
$920,000
Depreciation on manufacturing plant and
250,000
equipment
Property taxes on plant
35,000
Sales salaries
12,000
Delivery drivers' wages
8,000
Plant janitors' wages
10,000
Machine hours
25,500 hours
Required:
1. Compute Sambell's indirect cost allocation rate based on labour cost.
2. Compute Sambell's indirect cost allocation rate based on machine hours.
3. How much overhead was allocated during the year if the allocation base was direct labour
cost?
4. How much manufacturing overhead was incurred during the year?

overhead to individual jobs. At the beginning of the year, the company expected to incur t
following:
Manufacturing overhead costs
Direct labour cost
Machine hours
280,000
500,000
30,000
At the end of the year, the company had actually incurred the following:
Direct labour cost920,000
Depreciation on manufacturing plant and
250,000
equipment
Property taxes on plant
35,000
Sales salaries
12,000
Delivery drivers' wages
8,000
Plant janitors' wages
10,000
Machine hours
25,500 hours
Required:
1. Compute Sambell's indirect cost allocation rate based on labour cost.
2. Compute Sambell's indirect cost allocation rate based on machine hours.
3. How much overhead was allocated during the year if the allocation base was direct labour
cost?
4. How much manufacturing overhead was incurred during the year?

Added by Sharon H.

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